What equal amount of money did he put into his investment

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Reference no: EM131913329

Padayappa has now retired after 40 years of employment. He just made an annual deposit to his investment portfolio and realized he has $2,100,000 (not counting home, cars, furniture, etc.). His money has been earning 7 percent per year, and inflation has been running 4 percent per year over the past 40 years.

A. What equal amount of money did he put into his investment at the end of each year? $

B. What is the buying power of his $2,100,000 in terms of a base 40 years ago? $

C. If he could buy a TV 40 years ago for $350, what would a comparable one cost today if the consumer electronics inflation rate is -3 percent? $

Reference no: EM131913329

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